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Public Spending Efficiency And Political And Economic Factors: Evidence From Selected East Asian Countries

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  • Sok-Gee Chan Mohd
  • Zaini Abd Karim

Abstract

This paper analyses public spending efficiency and the effect of political and economic factors on public spending efficiency in East Asian countries for the period 2000-2007. In the first stage, the non-parametric Data Envelopment Analysis (DEA) approach is used to estimate public spending efficiency scores. In the second stage, the Tobit regression model is then used to determine the effect of political and economic factors on public spending efficiency. Results of the study show that China is relatively efficient in public spending on education, health, and maintaining economic performance and stability, Japan on infrastructure, and Singapore on promoting public services. In addition, countries in East Asia are relatively less efficient in public spending for promoting equal income distribution. The results also indicate that political stability and financial freedom have a positive effect on public spending efficiency. However, voice, accountability, and civil liberties have a negative effect on public spending efficiency.

Suggested Citation

  • Sok-Gee Chan Mohd & Zaini Abd Karim, 2012. "Public Spending Efficiency And Political And Economic Factors: Evidence From Selected East Asian Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(193), pages 7-24, April- Ju.
    • Handle: RePEc:beo:journl:v:57:y:2012:i:193:p:7-24
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    References listed on IDEAS

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    Cited by:

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    2. Xiao, Huijuan & Wang, Daoping & Qi, Yu & Shao, Shuai & Zhou, Ya & Shan, Yuli, 2021. "The governance-production nexus of eco-efficiency in Chinese resource-based cities: A two-stage network DEA approach," Energy Economics, Elsevier, vol. 101(C).
    3. Marijana Petrović & Nataša Bojković & Mladen Stamenković, 2018. "A Dea-Based Tool For Tracking Best Practice Exemplars: The Case Of Telecommunications In Ebrd Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(218), pages 105-128, July – Se.
    4. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," Working Papers hal-03116615, HAL.
    5. Cheick Camara, 2023. "Gender Budgeting and Health Spending Efficiency in Indian States: A Staggered Difference-in-Differences Analysis," CERDI Working papers hal-04294262, HAL.
    6. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," CERDI Working papers hal-03116615, HAL.
    7. Azmi, Muhammad Saifullah & Masih, Mansur, 2018. "Does education expenditure lead or lag GDP ? Malaysian evidence," MPRA Paper 108891, University Library of Munich, Germany.
    8. Sehoon Kim, 2022. "A Global Entrepreneurship Efficiency Benchmarking and Comparison Study based on National Systems of Entrepreneurship and Early-Stage Business: A Data Envelopment Analysis Approach," SAGE Open, , vol. 12(3), pages 21582440221, September.
    9. Dobdinga Fonchamnyo & Molem Sama, 2016. "Determinants of public spending efficiency in education and health: evidence from selected CEMAC countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(1), pages 199-210, January.

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    More about this item

    Keywords

    public spending efficiency; sata envelopment analysis; political and economic factors; East Asian countries;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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